CALGARY,
AB, March 20, 2025 /CNW/ - Reconnaissance
Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO)
(OTCQX: RECAF) (Frankfurt: 0XD)
(NSX: REC) announces the acceleration of drilling into
Q2 2025 and a corporate update.
Brian Reinsborough,
President and CEO commented: "We have made great
progress in getting Prospect I ready to
drill and, as a result, we are accelerating the
spud date into Q2 2025. Our in-country teams have commenced
community engagement, surveying, debushing and demining activities,
which will be followed by construction of a 10 kilometre road and
drill pad site.
"Prospect I is one of the largest mapped structures in the
Damara Fold Belt, is well imaged from 2D seismic, and demonstrates
a four-way dip closure in which we expect to penetrate over 1,500
metres of Otavi reservoir. Drilling at the Prospect I location has
been significantly derisked by the results of our first Damara Fold
Belt well, Naingopo, which encountered reservoir in the Otavi
carbonates, hydrocarbon shows and oil to surface. We are excited to
drill this follow-on exploration well as we continue to look to
unlock the significant hydrocarbon potential of the Damara Fold
Belt."
OPERATIONAL UPDATE
ReconAfrica continues to pursue activities relating to the
drilling of Prospect I. To date, initial surveying activity has
been completed, with debushing activities ongoing and demining
activities set to be undertaken in the coming weeks. As a result of
the progress to date, the Company has accelerated the spud date for
Prospect I to Q2 2025.
Prospect I is targeting 365 million barrels of unrisked and 32
million barrels of risked prospective light/medium oil
resources(1), or 1.7 trillion cubic feet of unrisked and
126 billion cubic feet of risked prospective natural gas
resources(1), on a 100% working interest basis, based on
the most recent prospective resources report prepared by
Netherland, Sewell, & Associates, Inc. ("NSAI"),
an independent qualified reserves evaluator.
Prospect I is noted as location 63 in the NSAI report.
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(1)
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There is no certainty
that any portion of the resources will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. Prospective
resources are those quantities of oil estimated, as of a given
date, to be potentially recoverable from undiscovered accumulations
by application of future development projects. Prospective
resources have both an associated chance of discovery and a chance
of development. Prospective resources are the arithmetic sum of
multiple probability distributions. Unrisked prospective
resources are estimates of the volumes that could reasonably be
expected to be recovered in the event of the discovery and
development of these prospects.
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CORPORATE UPDATE
As previously announced in a press release dated February 28, 2024, following mediation with the
plaintiffs in both the U.S. Action and the Canadian Action (as
defined in the February 28, 2024
press release), the Company announced that the parties entered into
a global settlement agreement to resolve both cases. The Canadian
Action received final court approval on June
20, 2024. The U.S. Action received final court approval on
December 30, 2024. This matter was
fully resolved within the Company's insured coverage limits.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
exploration of the Damara Fold Belt and Kavango Rift Basin in the
Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum
licences comprising ~8 million contiguous acres. In all aspects of
its operations, ReconAfrica is committed to minimal disturbance of
habitat in line with international standards and implementing
environmental and social best practices in all of its project
areas.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Cautionary
Note Regarding Forward-Looking Statements:
Certain statements contained in this press release constitute
forward-looking information under applicable Canadian, United States and other applicable securities
laws, rules and regulations, including, without limitation,
statements with respect to the timing of the drilling of Prospect
I, the timing of the completion of the class action settlement, the
Company's commitment to minimal disturbance of habitat, in line
with best international standards and its implementation of
environmental and social best practices in all of its project
areas. These statements relate to future events or future
performance. The use of any of the words "could", "intend",
"expect", "believe", "will", "projected", "estimated" and similar
expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on ReconAfrica's current belief or
assumptions as to the outcome and timing of such future events.
There can be no assurance that such statements will prove to be
accurate, as the Company's actual results and future events could
differ materially from those anticipated in these forward-looking
statements as a result of the factors discussed in the "Risk
Factors" section in the Company's annual information form dated
July 29, 2024, available under the
Company's profile at www.sedarplus.ca. Actual future
results may differ materially. Various assumptions or factors are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking information contained
in this release is made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
Disclosure of Oil and Gas Information:
The report of Netherland, Sewell & Associates, Inc.
("NSAI"), an independent qualified reserves evaluator,
entitled "Estimates of Prospective Resources to the Reconnaissance
Energy Africa Ltd. Interests in Certain Prospects and Leads located
in PEL 73, Kavango Basin, Namibia
as of March 31, 2024" (the "NSAI
Report") and the prospective resource estimates contained therein
and in this press release were prepared by NSAI, an independent
qualified reserves evaluator, with an effective date of
March 31, 2024. The NSAI Report was
prepared in accordance with the definitions and guidelines of the
Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook")
prepared by the Society of Evaluation Engineers ("SPEE") and
National Instrument 51-101 – Standards of Disclosure for Oil and
Gas Activities ("NI 51-101"). For additional information concerning
the risks and the level of uncertainty associated with recovery of
the prospective resources detailed herein and in the NSAI Report,
the significant positive and negative factors relevant to the
prospective resources estimates detailed herein and in the NSAI
Report and a description of the project to which the prospective
resources estimates detailed herein and in the NSAI Report applies
are contained within the NSAI Report, a copy of which has been
filed with the Canadian Securities Administrators and is available
under the Company's issued profile on SEDAR+ at
www.sedarplus.ca. The NSAI Report was filed on SEDAR+ on
July 29, 2024 under the "Other"
document type. The prospective resources shown in the NSAI
Report have been estimated using probabilistic methods and are
dependent on a petroleum discovery being made. If a discovery is
made and development is undertaken, the probability that the
recoverable volumes will equal or exceed the unrisked estimated
amounts is 90 percent for the low estimate, 50 percent for the best
estimate, and 10 percent for the high estimate. Low estimate and
high estimate prospective resources have not been included in the
NSAI Report. For the purposes of the NSAI Report, the volumes and
parameters associated with the best estimate scenario of
prospective resources are referred to as 2U. The 2U prospective
resources have been aggregated beyond the prospect and lead level
by arithmetic summation; therefore, these totals do not include the
portfolio effect that might result from statistical aggregation.
Statistical principles indicate that the arithmetic sums of
multiple estimates may be misleading as to the volumes that may
actually be recovered.
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SOURCE Reconnaissance Energy Africa Ltd.